contango(redirected from Forward premium)
Also found in: Financial.
A state in which the price of a futures contract is higher than the eventual or expected spot price of the underlying commodity or security.
[Probably alteration of 19th-century stock-exchange jargon continuation, the carrying over of an account until the next designated date of settlement.]
n, pl -gos
1. (Stock Exchange) (formerly, on the London Stock Exchange) postponement of payment for and delivery of stock from one account day to the next
2. (Stock Exchange) Also called: carry-over or continuation the fee paid for such a postponement. Compare backwardation
vb, -goes, -going or -goed
(Stock Exchange) (tr) to arrange such a postponement of payment (for): my brokers will contango these shares.
[C19: apparently an arbitrary coinage based on continue]
Past participle: contangoed
n (Fin) → Report m